Wednesday, November 28, 2007

Check Up: High Dividend Yield Stocks

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In this previous post, I looked at some possible plays of some high dividend yield stocks.

I'm curious to see how they have been performing since my last update.

GLAD: If there is buying volume coming in on a break above 19.75, then buy, with a stop=19.45. This is the best play out of the above group of sorry look stocks.
RESULT - stopped out.

FHN: If it bounces up from 22, then buy the first pullback that retraces less than 50% of that bounce, with a stop placed @21.75
RESULT - criteria not met, no trade

NCC: Look for buying volume to come in on a break above 22, stop=21.
RESULT - criteria not met, no trade

CT: The safer play is to buy the break above 34. But since the stop is going to be initially placed $28.6, it may be less risk to wait for price to drop below 30 before buying. Granted, buying on a drop below 30 may not necessarily be a high probability play.
RESULT - stopped out.

CSE: buy a break above 16.5, stop=15.5
RESULT - criteria not met, no trade

BPOP: buy @mkt if the intraday low is greater than 9.62, stop=9.45
RESULT - criteria not met, no trade

With GLAD, I actually decided to stay in the trade even though it dropped below my stop level. I rationalized it, arguing that it was resilient enough to stay above the 20d EMA. I realize now that I still haven't shaken my bad habit of moving my stop after entering the trade. The other thing was that my trading plan for GLAD was flawed, since I did not account for the scenario where it would tag the 20d EMA and bounce off of it. So that's another thing to work on before I am ready to go back to trading full-time.

Anyways, with that self-analysis out of the way, I must say, I like GLAD out of the whole group. Most of the remaining stocks in that group still look very ill and broken. Except maybe BPOP. BPOP is actually starting to look constructive to me. If it can stay above $9 for the rest of this week, then I will be looking to buy a break above $10 next week.

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